Oil prices climbed on Monday as tensions escalated in the Middle East, with Iran and Israel exchanging strikes and raising fears that a fragile ceasefire could collapse into a wider conflict.

Brent crude futures for July delivery rose 3.18 per cent to $96.05 per barrel, while U.S. West Texas Intermediate futures for August gained 3.46 per cent to $93.67 per barrel.

The Israeli military said its air force struck military targets in western and central Iran on Monday local time, according to a post by the Israel Defense Forces on X.

Meanwhile, OPEC+ agreed to raise output targets by 188,000 barrels per day starting in July, according to an OPEC statement, marking the fourth consecutive quota increase since the closure of the Strait of Hormuz.

The latest hike matches June’s adjustment, which had already been scaled down from monthly increases of 206,000 bpd in April and May, following the exit of the United Arab Emirates from the group.

President Donald Trump was briefed after Israel was struck by an Iranian missile for the first time since a ceasefire began, the White House confirmed to MS NOW.

Trump also said on Sunday that the missile attacks are “certainly not going to help negotiations,” signaling concern that the latest escalation could further complicate diplomatic efforts.